Should AMC Networks prioritize producing more original content for AMC+ streaming service or focus on licensing popular third-party shows to attract subscribers?

Introduction

The trade-off question at hand is whether AMC Networks should prioritize producing more original content for AMC+ streaming service or focus on licensing popular third-party shows to attract subscribers. This scenario involves balancing content strategy, resource allocation, and subscriber acquisition for a streaming platform in a competitive market.

I'll approach this analysis by examining the current product landscape, identifying key metrics, designing experiments, and providing a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about AMC+'s current market position. Could you share some insights on AMC+'s subscriber base and growth rate compared to major competitors?

Why it matters: Helps understand the urgency of subscriber acquisition Expected answer: Moderate subscriber base with slower growth than top competitors Impact on approach: Would influence the balance between short-term gains and long-term brand building

• Business Context: Based on industry trends, I'm assuming AMC+ operates on a subscription-based model. Is there any ad-supported tier, and how does this factor into revenue strategy?

Why it matters: Affects content strategy and potential monetization avenues Expected answer: Primarily subscription-based with plans for an ad-supported tier Impact on approach: Would consider content that appeals to both subscriber types

• User Impact: Considering AMC's brand heritage, I'm curious about the demographics of AMC+ subscribers. Are they primarily fans of AMC's cable content, or is there a significant new audience?

Why it matters: Influences content strategy to retain existing fans vs. attract new viewers Expected answer: Mix of traditional AMC fans and new streaming-first audience Impact on approach: Would tailor content strategy to serve both audience segments

• Technical: Given the focus on content, I'm wondering about AMC+'s current technical infrastructure. How scalable is the platform to handle potential rapid subscriber growth?

Why it matters: Ensures technical readiness for content strategy outcomes Expected answer: Moderately scalable with some limitations Impact on approach: Might prioritize gradual growth strategies to allow for infrastructure improvements

• Resource: Considering the high costs of content production, I'm curious about AMC's current budget allocation between original content and licensing. What's the rough split?

Why it matters: Determines feasibility of shifting resources between strategies Expected answer: 60% licensing, 40% original content Impact on approach: Would inform the extent of potential strategy shift and associated risks